\u3000\u3 Shengda Resources Co.Ltd(000603) 212 Cybrid Technologies Inc(603212) )
The backplane business is firmly in the leading position, and the adhesive film further strengthens the photovoltaic business. The company is mainly engaged in the R & D, production and sales of functional polymer materials in film form with adhesive as the core. At present, the company is the leader of photovoltaic backplane in the world. The layout of backplane product line is complete, and the market share is about 25% in 2020. At the same time, the company is accelerating the construction of new production capacity of photovoltaic adhesive film. In 2020, the market share of the company’s adhesive film business is about 4%. After the new production capacity is completed and put into operation in 2022, the company’s adhesive film production capacity will reach 36000 tons.
Benefiting from the rapid growth of installed capacity in the global photovoltaic industry, the backplane business is expected to make steady progress, and the large-scale capacity of adhesive film can be expected. The backplane is located at the outermost layer of the photovoltaic module, which plays the role of weather resistance, insulation and protection. Benefiting from the rapid growth of global photovoltaic installed capacity, it is expected that the shipment of the company’s main product traditional KPF backplane will remain stable, and the large volume of new transparent backplane products will bring performance increment. Photovoltaic adhesive film is mainly used for the packaging of photovoltaic modules. It wraps the cell and encapsulates it between photovoltaic glass and backplane. We predict that the market space of adhesive film may reach 45.2 billion yuan by 2025. The photovoltaic adhesive film market is highly concentrated. In 2020, the leading Hangzhou First Applied Material Co.Ltd(603806) market accounted for about 64%, which is in the absolute leading position. The second-line adhesive film manufacturers have been listed one after another, and the capital strength and financing channels have been improved, or it is expected to narrow the cost gap with the leading. It is expected that the company will continue to increase its production and sales volume with new production capacity, and is expected to achieve a market share of 7% – 8% in 2022.
Diversified development platforms help non photovoltaic business become a new growth point of the company. The company has the advantages of R & D and innovation based on concentric circle mode, and can develop products with different functions and application fields but small single market space in downstream photovoltaic, lithium battery, communication, 3C and other industries with rapid response and low-cost technology. Relying on the R & D advantages of polymer material platform enterprises, the company is expected to replicate the photovoltaic business development experience in 3C, lithium batteries and other non photovoltaic fields, so as to promote the long-term steady growth of performance. In 2020, the company’s non photovoltaic business revenue was 144 million yuan, accounting for only 6.6% of the company’s total revenue. However, the profitability of non photovoltaic business is significantly stronger than that of photovoltaic business. The expansion of non photovoltaic applications is an important strategic layout of the company based on long-term development. At present, several non photovoltaic projects of the company have reached the scheduled usable state by the end of 2021. With the production capacity put into operation, The company’s non photovoltaic business has entered a period of rapid development.
Profit forecast: it is predicted that the operating revenue of the company in the year of 21-23 will be 3.007/4.339/5.594 billion yuan, the net profit will be 1.77/3.43/4.55 billion yuan, the net profit growth rate will be – 8.60% / 93.26% / 32.56%, the EPS will be 0.44/0.85/1.12 yuan respectively, and the corresponding PE will be 59.37/30.72/23.17 yuan respectively. For the first time, the company will be given a “recommended” rating.
Risk warning: downstream demand is less than expected; Product prices fell.
